Saudi skyscrapers boom driving wood demand
Wednesday, April 1, 2015,
The frantic construction work in Saudi Arabia is driving the demand for wood products and has also boosted other related industrial sectors, mainly timber, said a report ahead of an industry event.
The Dubai Wood Show, the region’s only dedicated business-to-business meeting place for the wood, wood accessories and woodworking machinery industry, will be held from April 14 to 16 at the Dubai World Trade Centre.
The event is expected to attract around 10,000 high quality trade professionals from close to 100 countries.
According to Tropical Timber Market Report in September 2014, the wood imports into the kingdom have been on the rise in recent years and are expected to continue unabated in the coming decade.
Saudi Arabia is currently importing wood from countries such as Chile, New Zealand, Romania, Canada, Swedenand many other ones, it stated.
The real estate market in Saudi Arabia was valued at more than $0.37 trillion last year and is expected to top $0.4 trillion in five years, stated the report.
Currently, the Saudi housing and construction market is growing at an annual rate of between five and seven per cent due to high demand for housing development and commercial projects.
Estimates suggest that the Kingdom will need more than five million new housing units across all cities by 2020, it added.
In the coming period, Saudi Arabia is predicted to invest more in large projects, such as schools, universities, hospitals and airports. In addition, the tourism sector is developing quickly, while there are also major developments in both the commercial and residential construction sectors, said the event organisers.
All this activity will lead to demand for imported wood products, including hardwood for interiors, flooring and furniture, they stated.